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Recall Application 1, "Don't Forget the Costs of Time and Invested

Question 49

Multiple Choice

Recall Application 1, "Don't Forget the Costs of Time and Invested Funds," to answer the following questions.
-According to the application,if this year Betty spends $100,000 of her own money on materials, the interest rate is 5%, has living expenses of $20,000 and could have made $50,000 in her former line of employment, then Betty's opportunity cost of operating the business this year is:


A) $155,000.
B) $150,000.
C) $50,000.
D) $55,000.

Correct Answer:

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